With nearly half the country suffering the effects of lock-downs, the ATO has acknowledged the pressures on business and individuals by providing greater leeway around the government’s management of tax debts and collection activities in affected states.
This month it announced a pause on the more severe debt collection activities run by the ATO, including the issue of garnishee notices, statutory demands, and disclosure of business tax debts to credit bureaus. However, currently the move only applies to those affected by COVID-19 lock-downs in NSW, ACT and Victoria.
The announcement does not affect any other debt and lodgement activities. The ATO has stated this is only a temporary move, with the pause applied to the agency’s ‘firmer debt collection activities’ in lock-down states. Late lodgement penalties and tax reporting obligations have not changed. Compliance for these activities is still mandated.
If you have a business in Victoria, NSW or the ACT and require advice, please contact us on 08 8272 5620 for assistance and information about federal government programs for businesses needing to access COVID-19 support.